Sainsbury's pull Tobbacco sales in Scotland

[andym]

Sainsbury's has confirmed it is to remove tobacco from sale at a further six supermarkets in Scotland.

It said the move is in response to the Scottish government's health levy, a supplementary charge on business rates paid by large stores selling cigarettes and alcohol.

Sainsbury's already operates three supermarkets and one convenience store in Scotland which do not sell tobacco.

The extension of the policy will come into force on Monday 12 November.

The stores covered by the change are at Drumchapel, Garthdee, Hamilton, Saltcoats, Livingston and Leven.

The health levy applies to outlets with a rateable value of more than £300,000.

About 240 of the largest stores in Scotland are thought to be affected.

Ministers estimated that it would raise £110m during its first four years of operation.

A report by the Centre for Economics and Business Research (CEBR), commissioned by Asda, claimed that profits from Scottish supermarkets could be reduced by 10% following the introduction of the levy.

A spokeswoman for the Scottish government said: "The public health supplement was introduced in recognition of Scotland's well-documented health and social problems associated with alcohol and tobacco use.

"This government is already taking action to reduce to reduce alcohol and tobacco-related harm through legislation to introduce minimum pricing for alcohol and banning tobacco displays.

"The public health supplement will contribute towards the preventative spend measures that are being taken forward jointly with the Scottish government, local authorities, the NHS and the third sector."


www.bbc.co.uk/news/uk-scotland-scotland-business-20279771

[Skwoddy]

ooooo, This could be interesting indeed, monkey see monkey do etc.

[Ewol]

You might find this interesting or not, but I used to live in Saltcoats and my mum still does. It's where she goes for her cigarettes. She will not be pleased.

[Queenie Bee]

I imagine a few wont be ewol it's taking the choice away from the people this can never be right !!!!

[Ewol]

I agree Queenie. I don't like it.

You know you can't get specials on Alcohol up there? It's ridiculous.

[Queenie Bee]

It's a big issue prohibition through the back door springs to mind !!!

[Skwoddy]

Please dont take my interest as pleasure, I was referring to the probable backlash to a stupid move sainsbury's have made, making interesting following.

[Ewol]

I never did mate.

Oh and by the way the picture in that article has cigarette prices from 10 years ago or something. £4.30 a pack? More like £7 now.

[Skwoddy]

Im willing to bet that the 110million and 10% profit loss are seriously skewed figures, Sainsbury's will regret this. along with your mum.

[Banky]

SNP Alex Salmond should take his party and shove it where the sun don't shine in stead of trying to make
Scotland better he is taking us to a third world state.

[alvoram]

I agree rab.

I really hope all the supermarkets pull them, and they make no extra money out of smokers.

Truth is, the profit from cigarettes themselves is minimal, but I'm guessing the figures quoted include the projected losses from reduced sales of other items that the customer will buy from the same place as they buy their cigarettes.

[GothicLord]

this is interesting reading, and I can see other supermarkets following this example.

I can understand why it is being done, as it is a great tax dodge, and a 2 finger salute to the powers that be. Just a shame that as always the average person on the street is caught in the cross fire

[Deleted]

Typical of the "super"markets protecting their profits , but from a business point of view , who can blame them .

Politicians thinking they know more than the fools that vote for them ............ nuff said

[lobeydosser]

These new laws are nothing new. They have been discussed for years, both north and south of the border and what is happening here in Scotland this year, will happen eventually in the rest of the UK in time. It just so happens that Hollyrood has the power and the mandate to push them through without the interference of the House of Lords.

Most shops in Scotland have had shutters on their tobacco shelves for some time now although it has been left up to the shops as to how they operate these shutters.

I do notice though that shops that sell e-cigs, do not have them inside the shuttered areas.

Sainsbury's, like many big businesses are simply scaremongering in the run up to the referendum and no doubt we will see a lot more of this stupidity the nearer we get to voting day.

[padiho]

Nov 10, 2012 22:45:18 GMT GothicLord said:

this is interesting reading, and I can see other supermarkets following this example.

I can understand why it is being done, as it is a great tax dodge, and a 2 finger salute to the powers that be. Just a shame that as always the average person on the street is caught in the cross fire

I agree, shame for the customer who will suffer but good for Sainsbury. The councils and Government can't keep putting taxes on businesses. Look at all the empty shops in the high street, mainly due to the greedy councils increasing business rates beyond a reasonable level